Eldorado Resorts (ERI) - Get Report announced Monday that it has completed its $17 billion purchase of Caesars Entertainment (CZR) - Get Report, creating the largest U.S. casino and entertainment company.
The combined company will maintain the Caesars name and ticker symbol and trade on Nasdaq.
The merged entity owns and operates more than 55 casino properties worldwide, including eight casino hotel properties on the Las Vegas Strip.
It owns or operates casinos in 16 states: Nevada, Colorado, Missouri, Iowa, Florida, Mississippi, Louisiana, Ohio, Illinois, Indiana, New Jersey, Pennsylvania, Arizona, North Carolina, California and Maryland.
Regulatory approval from New Jersey on Friday and a vote of approval from Caesars shareholders clinched the deal.
To finance the transaction, Eldorado issued $772 million in new stock, $6.2 billion in junk bonds and received new loan terms from banks, Bloomberg reported.
Analysts anticipate the merged company will concentrate on sports betting, which is booming, Bloomberg reports. And they expect it will curb customer discounts that have diminished profits over the years.
Last month, Morningstar analyst Dan Wasiolek expressed doubts about funding for the deal.
“Given the material impact the coronavirus stands to have on leisure and travel demand and the financial health of Caesars and Eldorado, we see funding risk to Eldorado's proposed acquisition of Caesars closing,” he wrote.
"If the merger is completed, we don't believe the combined company would warrant a moat, given that the increased exposure to low-barrier U.S. gaming markets would remain intact.”
Caesars shares recently traded at $12.41, down 0.08%, and have slid 9% year to date.
Eldorado traded at $37.50, down 1.32%, and has slumped 37% year to date.